Home market strengthening

Prices increase 6.3% in U.S., 14.6% in S.J. County

WASHINGTON - A measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market.

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By Staff and wire reports

recordnet.com

By Staff and wire reports

Posted Dec. 5, 2012 at 12:01 AM

By Staff and wire reports

Posted Dec. 5, 2012 at 12:01 AM

» Social News

WASHINGTON - A measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market.

Last month, the California Association of Realtors said median home prices in San Joaquin County climbed 14.6 percent in October to $179,570, compared with October 2011, although the number of existing home sales declined 0.4 percent year over year.

Statewide, the median home price in October jumped 23 percent to $341,370, compared with a year earlier, CAR said.

CoreLogic also said Tuesday that prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted.

The real estate data provider said the decline reflects the end of the summer home-buying season.

Steady price increases are helping fuel a housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.

Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month.

Mortgage rates are near record lows, while rents in many cities are rising. That makes home buying more affordable, pushing up demand.

And more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.

Zillow.com reported last week that the so-called break-even horizon for buying vs. renting in October dropped to about two years in San Joaquin County in October.

At the same time, the number of available homes is at the lowest level in 10 years, according to the National Association of Realtors. The combination of low inventory and rising demand pushes up prices.

Last week, an index measuring the number of Americans who signed contracts to buy homes in October jumped to the highest level in almost six years. That suggests sales of previously occupied homes will rise in the coming months.

In San Joaquin County, the number of pending sales in October edged up to 859, not far below the 947 single-family homes for sale in the county that month, according to Trendgraphix.com.

Real estate brokers and agents and complained for months that the relatively few homes available for sale is holding the market back.

The inventory of San Joaquin County homes for sale in the third quarter was the lowest since the first quarter of 2005.

Builders, meanwhile, are more optimistic that the recovery will endure.

A measure of their confidence last month rose to the highest level in 61/2 years. And builders broke ground on new homes and apartments in October at the fastest pace in more than four years.